Budget reaction - Aida says best budget for many, many years

Aida CEO Alex Fenwick says today's Budget is positive for all homeowners and investors - in fact the best for real estate in many, many years.

"The Transfer Duty changes will bring about a huge cashflow improvement for buyers, and make home ownership affordable for many more people. It is also
likely to stimulate investment purchasing for second and third properties.

"There will also, of course, be more money in circulation generally as a result of the personal income tax cuts, and while the increase in the personal foreign investment allowance from R750 000 to R2million will see some funds leaving the country, this will most likely cause a slight drop in the rand that will ultimately stimulate job creation and foreign investment.

"What is more, if government continues to pursue its targets of at least 5 percent GDP growth per year for the next three years, and inflation that remains within the 3 to 6 percent range, it is unlikely that there will be much change in interest rates.

"Indeed, this Budget combined with the price growth of the past four years should ensure a golden age for SA real estate that extends well into the future."
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